The differences between taxable income and accounting income for a period that originate in one period and are capable of reversal in one or more subsequent periods.
Mat treatment in accounts.
However when the mat credit is not considered as a deferred tax asset it is still to be considered as an asset and the same should be classified under the head loans and advances.
In this case mat doesn t arise and hence accounting treatment is similar to the entry to be passed for provision for tax.
1 whether mat credit is a deferred tax asset.
Mat credit may be considered as a deferred tax asset for the purpose of accounting standard as 22 which relates to accounting for taxes on income.
Mat credit is shown as a deduction for the tax expenses in the year in which mat credit is recognized.
Disclosure with respect to mat.